Pending Home Sales Hit 4th Straight Monthly Gain

According to the National Association of Realtors, pending home sales show a sustained upward trend, rising for four consecutive months.  The increase in sales is believed to be because of more favorable housing affordability and the first-time homebuyer tax credit. 

The indicator used for tracking this upward trend is the Pending Home Sales Index.  This indicator is based on pending sales of existing homes.  A sale is listed as pending when the contract has been signed but the transaction has not yet closed, though the sale is usually finalized within one or two months of signing.